According to the report, under Section 5 of the Punjab Apartment and Property Regulation Act (PAPRA), 1995, EDC and licence fee is to be deposited by the builders.

A whopping Rs 280 crore is outstanding against promoters of top mega projects and approved builders in Mohali, according to the annual audit and inspection report of the Greater Mohali Area Development Authority (GMADA) for the year 2013-14.

The report, obtained by Newsline under the RTI Act, mentions that the amount is outstanding against 25 mega projects and 163 approved builders on account of licence fee and external development charges (EDC).

“The same point was raised during the previous audit too. It was further noticed that the top 10 promoters of mega projects have not deposited even a single rupee after July 2013.

“Non-recovery of EDC and licence fee has resulted into blockage of funds and affected development work in the area,” said the report by an audit team from the office of Accountant General (Audit), Punjab, headed by Assistant Audit Officer Raj Kumar.

According to the report, under Section 5 of the Punjab Apartment and Property Regulation Act (PAPRA), 1995, EDC and licence fee is to be deposited by the builders.

It is calculated on the basis of area of land to be developed, and could be paid in lumpsum or in instalments, failing which interest at 10 per cent normal and 3 per cent penal interest is charged.

The report said, “As a safeguard, the bank guarantee and hypothecation (collateral) deeds were kept with the GMADA and in case of regular defaulters, suitable action under rules was required to be initiated against the defaulters.

“On this being pointed out in the audit, the department stated that action has already been initiated against the defaulters. Final reply will be awaited in this regard.”

Reacting to the report, a GMADA senior official said, “Under the recently revised policy by the government, defaulters can pay 25 per cent of the default amount in lumpsum and the rest in six instalments.

“Due to the ongoing recession, several builders have not been able to pay the charges, but we keep issuing them notices and appropriate action will be taken.